5 proven CEO strategies for riding any wave of innovation
- In the current business landscape innovation is both a challenge and an opportunity.
- Studies show that up to 70% of digital transformation initiatives fall short of their objectives.
- The key practices followed by successful leaders include “stradaptability” and fostering a culture of “end-user obsession.”
Nothing is ever one-dimensional. And leaders in the current business landscape would do well to remember, innovation is both a challenge and an opportunity. Moore’s law claiming that computers, and computing power in general, is advancing at double the pace every two years is looking decidedly slow from where we’re standing now. Two years ago can seem akin to the dinosaur era as rapid technological advancements transform industries at a pace unseen before.
As this unprecedented pace continues to pick up speed (and though much maligned as an overused adjective these days, “unprecedented” is the only descriptor we can use with any accuracy when speaking of technology in 2024), business leaders find themselves caught between a rock and a hard place.
The rock is the urgency to adapt. Yesterday. But the hard place is the high failure rate of digital transformation projects. I can think of no scarier scenario to keep an executive team awake at night. Studies show that up to 70% of digital transformation initiatives fall short of their objectives. This high failure rate not only wastes expensive resources, but also has the potential to leave organizations eating their competitors’ dust. In other words, left behind.
So the challenge every business leader has to rise to is not contained exclusively in the quest to keep up with technology. It’s far more complex than that. The true challenge is how to identify the right opportunities and execute them to stay ahead. The right tools are needed. But to thrive in this new era, more than the right tools are required.
Business leaders need a strategic approach to leadership that emphasizes:
- Vision.
- Adaptability.
- And an unyielding focus on both their people and their customers.
This article explores key practices that successful leaders and companies use to spot and ride the next wave of innovation.
1. Embrace “vision-value” leadership
“Going” digital for digital’s sake is the fastest way to land in the 70% failure pot. Every business that is thriving in the digital age is combining two things that aren’t tangible technology components. They’re combining a strong vision with value-driven leadership. At first glance, this statement can seem a bit woolly. Don’t be fooled; it’s anything but as Bob Iger at Disney has proven. Digital leadership is about crafting a compelling vision that resonates with market needs and inspires innovation. Visionary leaders understand that technology is just a tool for achieving greater goals.
Visionary leaders understand that technology is just a tool for achieving greater goals.
Iger’s value-centric leadership helped steer Disney through one of its most transformative eras. The core of his leadership strategy has been to focus on optimism, courage and relentless innovation. The critical acquisitions of Pixar, Marvel and Lucasfilm have all been in line with this vision. As we now know, these moves have expanded Disney’s reach and prepared Disney to thrive as a digital revolution disruptor.
Iger recognized that vision paired with values-driven leadership could drive Disney to create a culture that used technology to the benefit of its customers and people. His vision culminated in the launch of Disney+, positioning the brand as a dominant player in the streaming space.
2. Practice “stradaptability”: Strategic agility
Digital transformation is not a one-off thing to “do.” Far from it. Instead, in the fast-paced digital age, thriving organizations have placed a concept I call “stradaptability” at the core of their operations. This is the ability to constantly adapt strategy in response to rapidly changing market dynamics. Traditional long-term strategic planning, often spanning decades, has given way to more agile approaches where evaluation and adjustment occur on a quarterly — or even continuous — basis.
Mary Barra of General Motors has provided an excellent example for us to learn from in this regard. During her tenure, she has pivoted from a long-standing emphasis on traditional vehicles to electric and autonomous technologies. Barra not only sold GM’s European interests but also reimagined its product lineup to focus on emerging market needs. This flexibility enabled GM to stay competitive in an evolving industry.
The takeaway is clear: thriving in the digital world requires agility, both in planning and execution. Leaders must be willing to iterate, experiment and adjust quickly. “Stradaptability” is essential for staying ahead of the curve and responding to both threats and opportunities in real-time.
3. Foster a culture of end-user obsession
Obsession with your end-user is a “must have” to drive successful innovation. Any company looking to build a sustainable future in the digital era has put their customers at the centre of everything they do. They have built an iterative process to constantly receive signals of what their customers want and what their evolving needs are.
Satya Nadella of Microsoft is held up as an example of end-user obsession. His tenure at Microsoft exemplifies this shift in mindset. Upon taking over as CEO, Nadella shifted the company’s focus from products to services, particularly cloud services like Azure. Under his leadership, Microsoft has moved away from a rigid, product-centric approach to one that was service-led, constantly refining based on customer feedback. This pivot allowed the company to grow its cloud business into a market leader, overtaking competitors who were slower to respond to customer needs.
Don’t forget, no one business has access to a set of technology tools that another business doesn’t. In today’s world, the competitive edge lies with leaders who make decisions with the end-user in mind. It’s these leaders who are better positioned to innovate and develop solutions that resonate with their audience. Customer-centricity is a non-negotiable for thriving in this rapidly evolving digital landscape.
4. Invest in inclusive innovation
The next wave of innovation is non-negotiable about inclusivity. Innovation thrives in environments where diverse perspectives and experiences converge. Companies that foster inclusivity in their innovation processes not only spot opportunities that others miss, but also cultivate a culture that encourages creative problem-solving.
Emma Walmsley, CEO of GlaxoSmithKline, revitalized the company’s research and development arm by weaving collaboration, diversity and patient-centricity into the heart of its innovation strategy. Recognizing that breakthrough innovation wasn’t going to come from status quo thinking, Walmsley proactively reshaped GSK’s leadership and research teams. Her focus included involving more women, individuals from varied cultural backgrounds and experts from different scientific disciplines. This infusion of diversity fostered a richer environment for creative problem-solving and accelerated innovation in areas like oncology.
Innovation thrives in environments where diverse perspectives and experiences converge.
The culture that arose from this inclusivity helped GSK expand its ability to explore new fields of medical research. The company, while previously a global heavy-weight for many years, has now also positioned itself as a leader in developing cutting-edge treatments. Furthermore, by adopting this inclusive approach, Walmsley ensured that GSK’s advancements respond to current needs and also anticipate emerging healthcare challenges across global populations.
Talk about future-proofing.
5. Leverage data and digital tools for continuous improvement
So we’ve already established that change is happening at breakneck speed. But what do you do to keep up? This is where data and digital tools come into their own. Data is a powerful asset for spotting trends, identifying new opportunities and making informed decisions. Companies that leverage data-driven insights can pivot quickly, and continuously refine their strategies to stay ahead of competitors.
Disney, under Iger’s leadership, made extensive use of real-time analytics to optimize everything from content production to distribution strategies for Disney+. Similarly, Microsoft and GM have embedded data analysis into the fabric of their decision-making processes. This ensures that their strategies evolve in tandem with market shifts in real time. Not at next year’s strategy event looking back on the performance of the 12 months prior.
By investing in digital tools and fostering a data-centric culture, companies can truly become nimble and respond to new opportunities quickly. This continuous feedback loop is what allows thriving organizations to stay ahead of competitors and maintain their competitive advantage.
Building resilience for future waves of innovation
The business landscape of today is characterized by rapid technological advancements, shifting customer expectations and increasing competitive pressures. The commercial environment is the same for everyone. But what sets thriving organizations apart is not simply their ability to adopt new technologies. Anyone can do that with a big enough budget.
Instead, the game-changer is their capacity to leverage those technologies through a combination of vision, adaptability and inclusiveness. Leaders like Bob Iger, Mary Barra, Emma Walmsley, and Satya Nadella continue to navigate this complex landscape by fostering cultures of vision-value leadership, practicing “stradaptability” and staying obsessively focused on end-user needs. These three practices are a proven recipe for success.
